Corruption and the Global Economy / Edition 1

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Corruption afflicts both developing and developed countries, as evidenced by recent scandals in Mexico, Ecuador, Korea, Japan, Italy, Russia, the United States, and elsewhere. Bribery often undermines political legitimacy, squanders government revenues, and distorts international trade and investment flows. Where it is pervasive, corruption can deter investment, thereby lowering growth.

In a number of countries, pervasive corruption is a serious obstacle to economic development. Yet, in spite of significant corruption, several East Asian countries have enjoyed rapid and sustained rates of economic growth, with benefits spread widely across the population. Why has corruption undermined growth in some situations while having little economic effect in others? Do certain government structures lead to more corruption or to more corrosive forms of corruption? Do certain economic policies -- such as extensive government regulation and discretionary industrial policies or, on the other hand, open trade and investment regimes -- tend to foster or inhibit corruption?

This book examines the causes and consequences of corruption, with particular attention to its impact on economic and political development. It also explores the steps that nongovernment organizations, developing-country governments, multilateral development banks, multinational firms, and the home countries of these firms can take to combat corruption. It recommends that the members of the OECD continue to push for the criminalization of transnational bribery; that the World Bank and other multilateral and bilateral development agencies vigilantly guard against malfeasance and devote more resources to improving governance and reducing corruption; and that the members of the World Trade Organization negotiate an agreement to enhance transparency and provide due process in government procurement.

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Editorial Reviews

". . . most substantial and up-to-date compendium of perspectives on the issue."--National Economic Council
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Product Details

  • ISBN-13: 9780881322330
  • Publisher: Peterson Institute for International Economics
  • Publication date: 5/1/1997
  • Edition description: New Edition
  • Edition number: 1
  • Pages: 244
  • Product dimensions: 5.90 (w) x 8.90 (h) x 0.60 (d)

Table of Contents

Preface vii
Acknowledgments xi
Introduction 1
1 The Globalization of Corruption 7
I The Sources and Effects of Corruption
2 The Political Economy of Corruption 31
3 Public Officials, Private Interests, and Sustainable Democracy: When Politics and Corruption Meet 61
4 The Effects of Corruption on Growth, Investment, and Government Expenditure: A Cross-Country Analysis 83
5 Comments 109
II Opportunities and Options for Reform
6 International Cooperation to Combat Corruption 119
7 The Importance of Leadership in Fighting Corruption in Uganda 133
8 Combatting International Corruption: The Role of the Business Community 147
9 Comments 163
Vito Tanzi 163
Jules Kroll 169
III Summary and Conclusions
10 Corruption as an International Policy Problem: Overview and Recommendations 175
A US Policy on Corruption 237
B Data Sources for Cross-Country Analysis of Corruption 241
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